Family malting firm hails resilience in tough market

A fifth-generation malting firm has hailed its resilience after a “difficult” global spirits market and restructuring programme knocked its financial performance.

Simpsons Malt recorded a £1.3 million pre-tax statutory loss in the year to December 31, 2025.

Underlying profit before exceptional items and tax came in at £5.6 million, which was lower than the £9.5 million logged in 2024, while turnover at the Berwick-based operator also fell from £264.1 million to £205 million.

Bosses say the numbers followed exceptional costs of £6.9 million, including an £863,000 restructuring bill to help “reduce operating costs and align with lower levels of demand”, and a £6 million non-cash impairment relating to a proposed maltings development in Rothes, Scotland.

They add the action – alongside ongoing cost management – “has provided a strong platform for the malting division’s prospects to remain positive”.

According to the firm’s trading update, whisky production during 2025 experienced a sharp decline as distillers responded to a third consecutive year of falling exports by value.

Tim McCreath, Simpsons Malt managing director, said: “The challenges facing the global spirits market during 2025 were significant and had a direct impact on demand across the UK malting sector.

“Against this backdrop, the group remained resilient and delivered an underlying profit of £5.6 million.

“The difficult market conditions required us to make several changes during the year to ensure our business remains aligned with customer demand and well-positioned for the future.

“These actions, together with a non-cash impairment relating to our proposed Rothes maltings development, impacted our reported result and led to a statutory loss before tax.

“The Rothes project remains a long-term opportunity for the business.

“However, we currently believe it is appropriate to take a cautious approach while retaining the option to progress the development when market conditions support further investment.”

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